Note 3 - Securities Available For Sale

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note

3

- Securities Available for Sale

:

Securities available-for-sale includes U.S. Treasury securities, corporate bonds, U.S. government agency (“Agency”) mortgaged-backed securities (“MBS”), mutual fund and equity investments. The amortized cost, fair value, and carrying value of available-for-sale-securities were as follows:

	at June 30, 2017
(in thousands)	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
U.S. Treasury Notes	$	47,426	$	295	$	-		$	47,721
Corporate debt securities		13,140		31		-			13,171
Agency MBS		25,803		22		(248	)		25,577
Equity securities		7,934		111		(336	)		7,709
Mutual fund investment		1,215		116		-			1,331
Total securities available-for-sale	$	95,518	$	575	$	(584	)	$	95,509

	at June 30, 2016
(in thousands)	Amortized		Gross Unrealized					Fair
	Cost		Gains		Losses			Value
U.S. Treasury notes	$	47,355	$	1,419	$	-		$	48,774
Corporate debt securities		13,291		97		(3	)		13,385
Agency MBS		31,782		441		-			32,223
Mutual fund investments		1,215		247		-			1,462
Total securities available-for-sale	$	93,643	$	2,204	$	(3	)	$	95,844

The following table presents the fair value and associated gross unrealized loss on available-for-sale securities with a gross unrealized loss at

June 30, 2017

and

2016.

	Less than 12 Months					12 Months or More				Total
	Unrealized			Estimated		Unrealized		Estimated		Unrealized			Estimated
	Loss			Fair Value		Loss		Fair Value		Loss			Fair Value
	(in thousands)
At June 30, 2017
Agency MBS	$	(248	)	$	22,349	$	-	$	-	$	(248	)	$	22,349
Equity securities		(336	)		5,655		-		-		(336	)		5,655
Total	$	(584	)	$	28,004	$	-	$	-	$	(584	)	$	28,004
At June 30, 2016
Corporate debt securities	$	(3	)	$	3,266	$	-	$	-	$	(3	)	$	3,266
Total	$	(3	)	$	3,266	$	-	$	-	$	(3	)	$	3,266

The Company conducts a regular assessment of its investment portfolios to determine whether any securities are other-than-temporarily impaired. In estimating other-than-temporary impairment losses, management considers, among other factors, length of time and extent to which the fair value has been less than cost, the financial condition and near term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any recovery. The

$584,000

unrealized loss at

June 30, 2017

relates to fluctuations in interest rates and financial markets and

not

credit quality. Because the Company has the intent to hold these securities and more likely than

not

will

not

need to sell them before recovery, the Company does

not

consider the investments to be other-than-temporarily impaired at

June 30, 2017.

The

$3,000

unrealized loss at

June 30, 2016

related to fluctuations in interest rates and financial markets and

not

credit quality. Because the Company had the intent to hold this security and more likely than

not

would

not

need to sell it, the Company did

not

consider this investment to be other-than-temporarily impaired at

June 30, 2016.

The amortized cost and estimated fair value of available-for-sale securities at

June 30, 2017,

by contractual maturity, are shown below. Expected maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized Cost		Fair Value
	(in thousands)
Due in three months or less	$	-	$	-
Due after three months to one year		8,132		8,139
Due after one year to five years		52,434		52,753
Due after five years		25,803		25,577
No stated maturity		9,149		9,040
Total securities available-for-sale	$	95,518	$	95,509

The following table presents the Company’s gross realized gains on available-for-sale securities. These gains and losses were recognized using the specific identification method and were included in non-interest income.

(in thousands)	Available-for-sale
	For the years ended June 30,
	2017		2016		2015
Gross realized gains	$	-	$	23	$	572
Other than temporary impairment		-		-		(91	)
Total	$	-	$	23	$	481

During the

twelve

months ended

June 30, 2016,

the Company realized a gain of

$23,000

from an early call of a corporate debt security for proceeds of

$4.8

million. During the

twelve

months ended

June 30, 2015,

the Company realized a gain of

$572,000

from the sale of equity investments for proceeds of

$994,000.

In

September 2014,

the Company recorded a pre-tax impairment charge of

$91,000

related to the mutual fund investment. The mutual fund lowered its dividend by

11%

and traded below its recorded cost for over

twelve

months.

At

June 30, 2017

and

2016,

U.S. Treasury notes and Agency MBS with an amortized cost of

$73.2

million and

$79.1

million respectively, are pledged to secure borrowings from the FHLB (see Note

9

).